National Futures Association has always been committed to providing our Members with the resources they need to meet their regulatory obligations as efficiently as possible. During some of our recent audits, NFA Members have suggested that we provide them with an annual reminder regarding certain requirements that are not part of their day-to-day operations. Responding to this request, NFA is pleased to send you this email listing certain requirements you have for the upcoming year. This list does not capture all of your responsibilities, but it should help remind you of certain non-routine requirements.

Within the next 12 months you will be required to:

1. Complete the Annual Update/Questionnaire on NFA's website and pay your NFA dues on the anniversary date of your firm's registration. Failure to satisfy all the requirements in the annual update process within 30 days of your anniversary date will result in the withdrawal of your firm's NFA registration and/or Membership.

3. Send your firm's Privacy Policy to every current customer (in addition to sending it to every new customer when the customer opens an account). For guidance in preparing your policy, please consult NFA's Privacy Policy questionnaire (Appendix D of the Self-Exam Checklist).

10. Submit a certified annual report within 90 days after the firm's fiscal year end, or if your firm is also registered as a Broker/Dealer, within 60 days after the fiscal year end (in addition to submitting the firm's monthly Focus II/I-FR-FCM with NFA via WinJammer).

You may also be required to do the following each quarter:

1. If active in SFPs, submit a log of any written customer complaints regarding SFPs to NFA within 15 days after the end of each quarter. You do not have to file the report if you do not receive any SFP complaints during the quarter.

2. For omnibus FCMs, submit the foreign futures and options report within 10 days after the end of each quarter.

We recommend that you keep this email as a reference guide to ensure that all requirements are completed on time throughout the year. As always, if you need assistance with these or any other NFA requirements, please contact NFA's Information Center at (800) 621-3570.

On January 31, 2006 NFA conducted a one-hour Web seminar entitled, "Preparing for an NFA Audit." During the seminar NFA staff gave an overview of the audit process, shared some tips on how to prepare for an audit and discussed some of the most common deficiencies found by NFA auditors. You may access the seminar at http://www.nfa.futures.org/member/indexArchive.asp.

NFA is the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the derivatives markets.